The COFE Token is the native and universal currency for the Cofe platform; this means the token is the preferred option for all payments on the Cofe network. Consumers can purchase coffee directly from the original coffee farmer using COFE, they can pay the roaster for their services directly in COFE, and in the CofeHouses set up by the project purchases made with a coffee token will be given a significant discount. At first, until adoption and education of cryptocurrency is wide-spread, fiat support will be a necessary evil!
The reason the COFE token is chosen as the native currency is that it allows for transactions on the platform to take place without incurring currency exchange or cross-border payment fees. This gives power to the farmer, the poorest, the most vulnerable person in the supply chain. They won't have to pay extra to collate each individual bit of revenue. No central bank, agency or middle-men will be necessary for these people to receive and access their money.
However, the farmers only receive the benefit from this universal currency if he is able to sell it. Therefore demand and market liquidity for COFE is key to the success of the project. Because of this, it is important that the CofeHouses offer large discounts for purchases made with this token.
One issue the Cofe team faced in early discussions was that the COFE token could inadvertently become a selling economy; i.e. supply constantly exceeds demand, this would drive price towards zero and decrease adoption. An initial two-pronged strategy has been developed to combat this, an intense market strategy to grow the customer base of the online platform and discounts in CofeHouses. Both of these will ultimately encourage more people to use the token and ensure that the price does not decrease.
The overall aim of the Cofe project is to create a coffee supply chain without farmer exploitation. However, this exploitation in the existing system is almost unpreventable as the coffee farmer themselves have too little power. The COFE Token is designed to redistribute the power in the supply chain, giving the farmer the ability to own their own commercial transactions and to give the Cofe project the inherent growth and flexibility to continuously provide a marketplace that re-balances the power in the supply chain to the advantage of every member.
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Together we can revolutionise the coffee supply chain.
Together we are coffee, minus the farmer exploitation.